Uttarakhand boasts of one of the fastest growing economy on the country. The state has achieved a 9.31 per cent growth in its Gross Domestic Product (GDP) - third after Gujarat and Bihar as per the data released by the Central Statistical Organization.

The size of Uttarakhand`s economy as measured by its Gross State Domestic Product (GSDP) for 2011 is pegged at Rs 775.8 billion. Born out of the division of Uttar Pradesh, Uttarakhand produces about 12% of the output of the undivided Uttar Pradesh. The state reported a gross income of Rs 137 million.

In 2003, a new industrial policy for the state with generous tax benefits for investors was initiated, which led to a massive upsurge of capital investment.